If you have not already been deluged with credit card applications, it will happen soon. When those applications start flowing in, you will have many options from which to choose. There are gold cards and silver cards, platinum cards and sapphire cards; there are cash rewards and travel rewards and student rewards.

Once you’ve chosen a card, you will fill out your application and no doubt notice that there is a great deal of information provided in rather small print. When you receive your approval, you will receive a document with more small print, followed by your first statement, containing, among other information, more small print. All of the small print contains important information that people seldom read or understand – but they should.

In this lesson you will learn about credit card usage and credit card consumer protection laws. By the end of the lesson you will be able to analyze the terms of credit cards and recognize what it means to use credit cards responsibly. You will understand the cost of credit and be able to analyze credit card disclosures and credit card statements — in other words, you will know what the important information provided in the “small print” is.

After you have finished this lesson, you should be able to:

• Define credit.
• Explain the importance of consumer protection laws.
• Explain the importance of analyzing credit card disclosure statements.
• Explain the importance of reviewing credit card statements.
• Identify ways to use a credit card responsibly.